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Peru to become world`s second-largest copper producer

Source: www.chinamining.org  Citation: The Financial Times  Date: August 26, 2014

Peru is set to become the world`s second-largest copper miner, behind neighbouring Chile, thanks to a $20bn pipeline of Chinese mining projects, according to senior officials in Lima.

Last month`s $7bn acquisition of Glencore`s Las Bambas copper project in Peru by China Minmetals` MMG subsidiary has reinforced the links between the two countries, as Beijing seeks to secure more resources to drive economic growth.

MMG`s Las Bambas deal means Chinese backers are now behind one-third of all Peru`s new mining investments by value, estimated by the country at $61bn.

While US companies ¨C including Newmont Mining and Freeport-McMoRan ¨C have been among the biggest investors in Peruvian mining, Chinese projects in the country are now worth more than those from the US and Canada combined.

Eleodoro Mayorga, Peru`s energy and mining minister, said: "We have excellent relations with the Chinese; China has evolved as a partner. There is more openness, not only at a financial level, [but] also at trade and social responsibility levels.

"It is not the closed, traditional, governmental China, but transnational companies playing the market game," he said in an interview with the Financial Times.

Peru expects to add 1.2m tonnes of copper to its production by 2016, according to Guillermo Shinno, deputy mining minister ¨C which will take its output past that of China, which was the world`s second-largest producer.

Las Bambas is one of Peru`s largest copper projects, with annual output of 450,000 tonnes expected when the mine goes into full production.

Glencore had said the mine could open in the second half of 2015, but MMG is analysing the project`s schedule and budget after taking over operations at the mine this month. The project was initiated by Xstrata before its takeover by Glencore last year.

Other Chinese mining investments in Peru include Chinalco`s $4.82bn Toromocho copper mine, which is currently undergoing an expansion; Minmetals and Jiangxi`s $2.5bn El Galeno, a copper, gold and silver project; a $1.5bn enlargement of an iron ore mine by Shougang Hierro Peru in Marcona; and Jinzhao Mining`s planned $3.28bn investment in Pampa de Pongo, another iron ore mine.

Peru`s mining sector has sometimes proved complex for foreign investment because of local conflicts, often over land and water rights. These conflicts are at risk of being reignited when regional elections take place in October ¨C with LatAm Confidential, a Financial Times research publication, reporting that certain prominent candidates likely to side with local communities against mining groups.

Three years ago, Minas Conga, a $5bn gold project involving Newmont and Minas Buenaventura of Peru, was halted by riots in Cajamarca, amid local concern over water resources. More recently, Zijin`s $1.5bn R¨ªo Blanco copper project has stalled owing to community conflicts.

Some mining analysts have flagged up access to water as a growing concern around the world for mining companies.

However, Mr Mayorga said foreign investors were becoming more sensitive to these potential flashpoints with communities in mining regions.

He argued that new investors had "more consciousness" of water as an issue. "There is no new investor arriving in Peru who could think it will take the water away from the river and from the community," Mr Mayorga claimed. "Today, each project arrives with a solution in hand."

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China`s natural gas output up 7.6% in Jan-Jul to 73.3 bln cu m

Source: www.chinamining.org  Citation: China Knowledge  Date: August 26, 2014

China saw its output of natural gas increase 7.6% year on year to 73.3 billion cubic meters in the first seven months of this year, said the National Development and Reform Commission in a statement published on its website.
    
In the first seven months, China`s natural gas imports grew 11% year on year to 33.2 billion cu m.
    
From Jan to Jul 2014, the consumption of natural gas amounted to 102.4 billion cu m, 8% more than it realized in the same period of 2013.
    
In the month of Jul, China`s natural gas output grew 8.2% year on year to 10.1 billion cu m, while its import of natural gas amounted to 4.9 billion cu m, reflecting a year on year increase of 4.3%.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China`s crude oil output up 0.5% in Jan-Jul to 121 mln tons

Source: www.chinamining.org  Citation: China Knowledge  Date: August 26, 2014

China, the world`s second largest oil consumer, saw its crude oil output edge up 0.5% year on year to 121.15 million tons in the first seven months of this year, according to recent figures released by the National Development and Reform Commission.
    
From Jan to Jul, the country processed 263.74 million tons of crude oil, 3.2% more than in the same period of 2013.
    
The country saw its output of oil products grow 4.8% year on year to 164.55 million tons in the first seven months.
    
The country`s consumption of oil products rose 2.9% year on year to 154.35 million tons in the first seven months. There was 8.1% growth in the consumption of gasoline and a 1.4% decrease in the consumption of diesel.
    
In the month of Jul 2014, China`s crude oil output edged up 0.5% year on year to 17.38 million tons, while its output of oil products rose 1.1% to 23.55 million tons.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

More lenders get green light to import gold

Source: www.chinamining.org  Citation: China Daily  Date: August 25, 2014

Gold bracelets on display in Lianyungang, Jiangsu province. China is set to gain more gold pricing power by setting up an international board at the Shanghai Gold Exchange.

China is moving to gain more pricing power in the global gold market, allowing more banks to import the metal and starting an international board at the Shanghai Gold Exchange.
    
Shanghai Pudong Development Bank Co Ltd and China Mer-chants Bank Co Ltd said that they received approval earlier this month to import gold. Reuters had reported that Standard Chartered Plc has also been cleared for imports, although the bank declined to comment.
    
With these three, China would have 15 banks that may import gold.
    
According to the Shanghai Gold Exchange, the platform for all physical trade in China, SPD is among the top 10 trading members so far this year and CMB is among the top 20.
    
Meanwhile, the international board of the gold exchange, located in the China (Shanghai) Pilot Free Trade Zone, will start trading as early as September, an exchange source said. Although no official announcement has been made, "all parties involved have started preparing. Of course we hope the more participants the better", said the source. More lenders get green light to import gold
    
The move will also help China establish a yuan-denominated gold pricing system, a note from CMB said.
    
"More participants mean more channels for gold trading, and international players may join in, deepening the China gold market`s integration into the global market," said Yang Fei, a gold investment analyst in Shanghai.
    
The exchange plans to launch three physically backed gold contracts on the FTZ international board, which aims at becoming a price-discovery center.
    
Analysts and market insiders said all these moves will help China`s gold importers gain more pricing power in the global market.
    
According to statistics from the World Gold Council, China became the world`s largest gold buyer in 2013.
    
"A market`s pricing power depends on its activity and accessibility. The more players it involves, the more say it has," said Albert Cheng, managing director for the Far East at the WGC.
    
At present, pricing power lies largely with the London Bullion Market Association.
    
Xu Luode, chairman of the exchange, said earlier this year that as the world`s biggest consumer and producer of gold, China should have its own pricing benchmark. The international board will support that goal.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China`s July bauxite imports plunge 52% on year to 3.1 mil mt

Source: www.chinamining.org  Citation: Platts   Date: August 25, 2014

China`s bauxite imports plunged 52.3% to 3.1 million mt in July from 6.5 million mt in July 2013, latest General Administration of Customs data showed Friday, August 22.
    
The July total was up 5.7% from the month before.
    
Bauxite imports over January-July totaled 22.8 million mt, down a sharp 42.3% year on year.
    
Imports have fallen since Indonesia imposed a ban on mineral ore exports on January 12. Many Chinese buyers had stockpiled ahead of the ban.
    
Indonesia was China`s top supplier of bauxite before the ban was imposed, accounting for about 70% of its total imports.
    
There was no record of bauxite being imported to China from Indonesia in July, compared with 4 million mt of imports in the same month of 2013.
    
Over January-July, China`s bauxite imports from Indonesia totaled 8.8 million mt, down 65.8% from 25.7 million mt in the same period a year earlier.
    
China`s importers have been increasing supply from other regular suppliers as well as actively seeking new supply sources since Indonesia`s export ban was imposed.
    
Imports from Malaysia totaled 226,692 mt in July, sharply higher than China`s total bauxite imports from Malaysia over full year 2013 at 156,140 mt and full year 2012 at 196,598 mt.
    
Over January-July 2014, China`s bauxite imports from Malaysia totaled 429,689 mt.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China`s iron ore imports from Australia rise 33.5% on year to 55.37 mil mt in Jul

Source: www.chinamining.org  Citation: Platts  Date: August 25, 2014

China imported 55.37 million mt of iron ore from Australia in July, up 33.5% year on year and 10% from June, data released Friday by the General Administration of Customs showed.
    
A trader source in Zhejiang said Australian miners like Fortescue Metals Group were selling more iron ore into China as they had ramped up their output and were giving deeper discounts to China buyers in July.
    
Australia`s Fortescue Metals Group reached a 155 million mt/year production capacity target in end March this year, Platts reported earlier.
    
"When FMG offered a 15% discount for their flagship 56.7% Fe Super Special Fines product for July, many Chinese buyers [took it up]," said the Zhejiang trader.
    
"Chinese end-users also preferred to use more Australian ores in their furnaces as they were already used to it and and that explained why there was an increase inflow of ore to China from Australia," he added.
    
Australia was the largest supplier of iron ore to China, accounting for 60% of total imports in June.
    
China`s imported a total of 82.52 million mt of iron ore in July, up 10.7% from 74.57 million mt in June.
    
Imports from Brazil, China`s second largest iron ore supplier, totaled 14.12 million mt in July, up 7.46% year-on-year and 14.15% month-on-month, the data showed.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China imported 55.37 million mt of iron ore from Australia in July, up 33.5% year on year and 10% from June, data released Friday by the General Administration of Customs showed.
    
A trader source in Zhejiang said Australian miners like Fortescue Metals Group were selling more iron ore into China as they had ramped up their output and were giving deeper discounts to China buyers in July.
    
Australia`s Fortescue Metals Group reached a 155 million mt/year production capacity target in end March this year, Platts reported earlier.
    
"When FMG offered a 15% discount for their flagship 56.7% Fe Super Special Fines product for July, many Chinese buyers [took it up]," said the Zhejiang trader.
    
"Chinese end-users also preferred to use more Australian ores in their furnaces as they were already used to it and and that explained why there was an increase inflow of ore to China from Australia," he added.
    
Australia was the largest supplier of iron ore to China, accounting for 60% of total imports in June.
    
China`s imported a total of 82.52 million mt of iron ore in July, up 10.7% from 74.57 million mt in June.
    
Imports from Brazil, China`s second largest iron ore supplier, totaled 14.12 million mt in July, up 7.46% year-on-year and 14.15% month-on-month, the data showed.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

Zinc demand higher than expected

Source: www.chinamining.org  Citation: Reuters  Date: August 22, 2014

China`s MMG Ltd, owner of the world`s third-biggest zinc mine, said the global deficit in the metal had increased faster than expected, spurred partly by demand growth in China to rust-proof steel for cars.
    
The global zinc market deficit expanded to 234,000 tons in the first six months of 2014, from a surplus of 28,000 tons in the same period last year, according to the International Lead and Zinc Study Group.
    
"Growth has been higher than expected," MMG Chief Executive Andrew Michelmore said on Thursday, referring to demand.
    
He said demand in China had picked up as companies sought galvanizing technology, following a push by the International Zinc Association to tout the benefits of coating steel with zinc to prevent rust.
    
"The reaction has been quite spectacular," said Michelmore, who is also chairman of the International Zinc Association. "That`s having a flow-on effect in the demand for zinc."
    
London Metal Exchange three-month zinc prices have climbed 14 percent this year to $2,352 a ton.
    
However, on the supply side, Michelmore said smelters had produced zinc flat out over the past few years to lower their unit costs amid a price slump, which beefed up stocks of the metal and has led to some softening in demand for zinc in concentrate.
    
"I think we`ll see that come back as the impact of the mines that have been shutting down really have an impact on the market," Michelmore said on a conference call after MMG reported its half-year results.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.

China`s coal output down 1.45% in Jan-Jul to 2.16 bln tons

Source: www.chinamining.org  Citation: China Knowledge  Date: August 22, 2014

China saw its coal output decrease 31.8 million tons or 1.45% year on year to 2.16 billion tons in the first seven months of this year, according to the latest statistics released by the China National Coal Association.
    
According to the statistics, the country`s coal sales decreased 32.17 million tons or 1.54% year on year to 2.05 billion tons in the seven-month period.
    
In the month of Jul 2014, the country`s coal output declined 1.63% year on year to 301 million tons, while its coal sales for the period dropped 1.84% year on year to 289 million tons.
    
From Jan to Jul, China`s coal consumption edged up 0.2% year on year to 2.31 billion tons including 1.17 billion tons consumed by electricity industry, up 0.4% year on year.

About CHINA MINING

Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.

CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20^th-23^rd, 2014. We invite you to join the event and to celebrate the 16^th anniversary of CHINA MINING with us.  For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.